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Robinhood's legal chief criticizes regulatory 'nanny state'

The Hill logo The Hill 10/7/2021 Lexi Lonas
a close up of a cell phone: Robinhood's legal chief criticizes regulatory 'nanny state' © Getty Images Robinhood's legal chief criticizes regulatory 'nanny state'

Robinhood's legal chief at a Security Traders Association conference on Wednesday criticized the regulatory "nanny state."

Robinhood has been arguing against the Securities and Exchange Commission (SEC) looking into game-like features that are used by companies, saying the government agency would see legal challenges, Bloomberg reported.

"Regulators need to catch up," Daniel Gallagher, who became Robinhood's chief legal officer in 2020, said. "That's the way I would, if I was running the place, look at it. Maybe take a look at our old rule book because of these new technologies."

Gallagher argued the SEC needs to adapt to new technology used by the industry instead of trying to hold companies back.

"It's more this nanny state first," Gallagher, a former SEC commissioner, continued.

He added that regulators are looking to take a "we need to insert ourselves instead of just recognizing the rule book's old" stance, according to Bloomberg.

Robinhood recently had to pay almost $70 million in fines and restitution to the Financial Industry Regulatory Authority for inaccurate information and regulatory relapses.

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